Summary
A 52-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved financial issues. The applicant had delinquent accounts totaling over $74,000, stemming from a history of financial difficulties dating back to 2007-2010.
Specific allegations included an unpaid bank credit card balance of $702, a first mortgage with a past-due balance of $2,647, and defaulted student loan accounts with a past-due balance of $74,482. Other debts involved a cellular telephone account, several charged-off bank credit cards, and various other accounts, including two medical accounts. A second mortgage of $65,687 was charged off, forgiven, and its lien released.
Despite acknowledging financial difficulties due to her husband's job loss and injuries, the applicant failed to provide documentation or demonstrate effective actions to mitigate her debts or seek financial counseling. This led to the conclusion that her financial problems were not under control, raising concerns about her reliability, trustworthiness, and judgment, resulting in the denial of her security clearance.
Why the Applicant Was Denied
- The applicant had a long-standing history of financial difficulties dating back to 2007-2010.
- She failed to provide documentation supporting her claims regarding her debts and did not demonstrate a good-faith effort to resolve them.
- The applicant's financial problems raised concerns about her reliability, trustworthiness, and judgment.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's husband's job loss and injuries contributed to her financial issues.
- AG ¶ 20(a)rejectedBehavior Occurred Long Ago or Infrequently
- AG ¶ 20(c)rejectedReceived Financial Counseling
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Debts
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Debts
Key Rule Quoted
“"Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information."”
Procedural Posture
- SOR issuedJan 3, 2015
- Answer filedFeb 2, 2015Applicant elected for a written record decision.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 1, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Difficulties on Reliability and Trustworthiness